STAMFORD, CT — Justin C. Murphy, the mastermind behind Greenwich Investment Group’s ($Mara Investment Management LP and Mara Investments Global Management LLC$), was today sentenced to 54 months in prison by U.S. District Judge Victor A. Bolden for an elaborate investment fraud scheme that stole over $3.4 million from his unsuspecting investors.
According to court documents, Murphy, 50, of Stamford, CT, defrauded investors by claiming his hedge fund used a risk-balancing strategy when in reality, he engaged in far riskier investments and siphoned off millions for personal gain. He falsified account statements and tax forms, leading investors to believe their funds were performing better than they actually were.
Murphy’s scheme was so sophisticated that it allowed him to fund a lavish lifestyle in Brazil while evading detection by his victims. The funds he stole were used to pay for personal expenses, invest in a relative’s startup, and live a year of luxury hotel accommodations, all at the expense of his investors.
The investigation into Murphy was a collaborative effort between the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division, with assistance from the Justice Department’s Office of International Affairs and Brazilian authorities. Murphy was arrested in Brazil on December 6, 2023, and extradited to face justice in the United States.
Judge Bolden also ordered Murphy to pay restitution totaling $3,782,154, which includes losses to an additional investor who had entrusted money to him before the scheme began. Murphy’s guilty plea to one count of wire fraud and one count of money laundering was entered on April 29, 2025.
Murphy, currently released on a $250,000 bond, is set to begin his sentence on October 15. This sentencing serves as a stark reminder of the consequences for financial predators who target hardworking individuals seeking legitimate investments.
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Key Facts
- State: Connecticut
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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